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Consider the Following Short-Run Cost Curves for a Profit-Maximizing Firm

Question 112

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Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry. Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry.   FIGURE 9-2 -Refer to Figure 9-2.If the market price is $2,the firm will A) produce zero output.and make zero profit. B) produce zero output.and suffer a loss equal to its fixed cost. C) continue operating in the short run and suffer a loss that is less than its fixed cost. D) produce 300 units and make a loss equal to total variable cost. E) produce 200 units and make a loss equal to its total fixed cost. FIGURE 9-2
-Refer to Figure 9-2.If the market price is $2,the firm will


A) produce zero output.and make zero profit.
B) produce zero output.and suffer a loss equal to its fixed cost.
C) continue operating in the short run and suffer a loss that is less than its fixed cost.
D) produce 300 units and make a loss equal to total variable cost.
E) produce 200 units and make a loss equal to its total fixed cost.

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